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New York’s mayor, Michael Bloomberg, is considering applying a tax on manufacturers of sugar based soda in order to reduce consumption and drive taxes revenues. Does this make sense?
Taxes on consumables have been shown to reduce demand for them. The best example of this are the taxes levied on tobacco products. Consumption of tobacco has drastically reduced over the past few decades as taxes have been increased, education on the bad effects have been increased and access reduced.
New York City’s tax would amount to about 12 cents on a can of sugar containing soda and would raise an extra $1billion per year for the treasury. Bloomberg suggests that this money can go to health services and teaching as well as fighting obesity. He suggests that it is “a fix that just makes sense”.
Does it make sense though? Anything that reduces demand for sugary soda, especially amongst low income families that consume most of it, does indeed make sense. But the example of tobacco highlights too that it must be part of a combined campaign that includes the following pillars:-
- consumer education
- access to the product
- substitution of other drinks
- subsidies to farmers that produce a lot of the sugar and corn-syrup found in soda.
Tackling all of these issues at once may be difficult, but to wean America and the western world off soda, it’s of critical importance. Yet, it’s right that Bloomberg takes the initiative and starts acting on one of these necessary pillars.
Consuming fewer sugary drinks is key to a healthy Zen lifestyle. Water is the best and most appropriate fluid to hydrate us and can fill our drink needs. Diet sodas ought to be avoided due to the processes chemicals found in them, particularly aspartame which has questions over its suitability for human consumption.
Image: http://www.flickr.com/photos/poolie/2474643298
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